Looking at the current corporate environment where work pressure is all but more, most of you would like to get a little break to rejuvenate and come back fresh. So, you begin charting out trip plans to either domestic or international locations.
You may not have the savings or say do not want to use the same for the trip and so, the option available to you is to apply for a personal loan that can be granted for the said purpose. You applied only to face the rejection later on as your CIBIL Score for Personal loan fell short of the cut-off mark.
All such travel plans suddenly came to a halt, leaving you disappointed and shocked at the same time. The poor credit card payment record led to a fall in the score as told by the bank officials when you inquire with them on the matter.
However, if you had checked the score before applying for a loan, you would have averted the disappointment if not got the approval. Let’s check out the CIBIL Score that is sought by the lenders to approve a personal loan before discussing the ways to check the same.
A Score of 750 and Above Makes Personal Loan a Formality for You!
A CIBIL Score, which represents the creditworthiness of an individual, ranges from 300-900 in India. A score of 750 and above can make it for you with attractive interest rates. Even if you have 700-750, the deal can be made but most probably not when it’s below the 700 marks. As the personal loan is granted without having you to submit a collateral, lenders seek high creditworthy individuals and that’s why they find it comfortable lending to those with a score of 750 and above, which is generally achieved on the back of the timely payment of the past or ongoing loans or cards.
Can a Secured Personal Loan be Given If the Score is Below 700?
A personal loan can be granted to you even if the score is below 700, provided the debt is backed with collaterals such as fixed deposit, life insurance, finance etc. Loans offered against these financial instruments are called as secured credits. The loan amount can account for 80%-90% of the collateral value, thereby assuring the bank of receiving the money back in case you default, be it intentionally or unintentionally. Speaking of your benefit, the loan can come with lower interest rates compared to when given without a collateral.
How to Check CIBIL Score?
Now that you know the score required for a smooth approval to personal loan applications, it’s time to be told the ways to check the same. All you need to do is to log on to the official website of CIBIL, one of the premier credit information companies in India. Enter your personal and credit details before submitting your responses. The details would be scrutinized by CIBIL before it gives you an access to create a login. Yes, you can create a login by choosing a User ID and password as per the instructions. Get the login created for you to check the score. But don’t check so often as the score could come down with the same.
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